Following the resolution of a tax dispute with Egypt’s tax authority, Egyptian billionaire Nassef Sawiris said on Tuesday his company, Orascom Construction Industries (OCI S.A.E.), would make “huge” investments in Egypt.
“Our first investment is going to be presented to the government this week for a multi-billion dollar project related to the power sector in partnership with a prominent Middle Eastern group,” Sawiris, one of the richest men in the country, told Reuters.
Egypt’s economy is struggling to rebuild following more than three years of political turmoil which has scared away tourists and foreign investors.
“We are pleased that this dispute has now been resolved. This is not only a victory for the Company and all its stakeholders, but also for the rule of law and the general investment climate in Egypt. The outlook for Egypt is very promising, and we continue to be committed to channeling resources towards growth and new investments in the country.” Sawiris said in an earlier statement.
In a statement on Tuesday, the Dutch parent company OCI N.V. announced that the Egyptian Tax Authority’s (ETA) Independent Appeals Committee, the responsible body overseeing the tax dispute between OCI N.V.’s subsidiary, OCI S.A.E., and the ETA, has ruled in favor of the Company.
The tax dispute was initiated on 6 October 2012, when the former President of the previous regime gave a public speech in which he stated that a number of companies were to be targeted for tax evasion. Shortly thereafter, OCI S.A.E. received an unsubstantiated tax evasion claim related to the sale of its cement assets to Lafarge SA in 2007. This was filed against OCI S.A.E. despite there being no official investigation to support these accusations.
Source: Reuters
